The Afterpay Ltd (ASX: APT) share price is on course to end the week on a very positive note.
In afternoon trade the payments company’s shares are up 5.5% to $101.55.
Why is the Afterpay share price charging higher?
Investors have been buying Afterpay’s shares on Friday after the release of an update on its Canadian operations.
According to the release, the company has partnered with top fashion and beauty retailers in Canada including SHEIN, Rains, Triarchy, and Clarins.
The company also revealed some shopping trends it is experiencing on its platform in the market. It advised that since the holiday season started in October, consumers are purchasing more sweaters, dresses and coats.
Afterpay is also seeing a spike in jeans, with sales in November 138% higher than in September. It believes this shows that consumers are craving normalcy through their wardrobes.
In the beauty category, fragrance has been revealed as the item at the top of consumers’ shopping lists for this gift giving season.
“Growing rapidly.”
Afterpay’s Head of North America, Melissa Davis, advised that the company’s buy now pay later platform is growing rapidly in Canada.
She said: “Afterpay is growing rapidly in Canada, especially among Millennial and Gen Z consumers, because our service helps young shoppers budget their own money and pay over time. In doing so, our retail partners benefit by attracting new, highly engaged young consumers – helping them increase sales, basket sizes and conversion during the most important retail season of the year.”
The release explains that the platform has helped customer conversion rates increase by more than 20% and average order values increase by more than 25% compared to all other payment methods.
Furthermore, last month Afterpay launched cross border shopping, which is providing its Canadian retailers access to its international network of young and engaged shoppers.
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Returns as of 6th October 2020
More reading
- 3 of the best ASX shares you can buy today
- Why the ASX tech share rally can run well into 2021
- 5 things to watch on the ASX 200 on Thursday
- Top brokers name 3 ASX shares to buy today
- Why Afterpay, Creso Pharma, Healius, & Resonance Health shares are storming higher
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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